On Wednesday, the Federal Government finally announced the scrapping of the controversial fuel subsidy regime and declared that every Nigeria is now free to import fuel into the country as long as the product meets “existing quality specifications and other guidelines issued by Regulatory Agencies.”
The government further said Premium Motor Spirit, also known as petrol, should not be sold to Nigerians above N145 per litre.
But shortly after the announcement, the Nigerian Labour Congress, NLC, threatened a showdown with the government, describing the move as “the height of insensitivity and impunity.”
However, Aproko247 learnt through a statement issued by the Minister of State for Petroleum Resources, Kachikwu Ibe, confirming the new pump price that the labour was carried along by the government.
In the statement, Kachikwu affirmed that at a meeting of “various stakeholders presided over by His Excellency, the Vice President of the Federal Republic of Nigeria”, Prof Yemi Osinbajo, “the Leadership of the Senate, House of Representatives, Governors Forum, and Labour Unions (NLC, TUC, NUPENG, and PENGASSAN)” were in attendance.
It was disclosed that at the meeting, the following were reviewed:
“1. The current fuel scarcity and supply difficulties in the country.
- The exorbitant prices being paid by Nigerians for the product. These prices range on the average from N150 to N250 per litre currently.
- The meeting also noted that the main reason for the current problem is the inability of importers of petroleum products to source foreign exchange at the official rate due to the massive decline of foreign exchange earnings of the federal government. As a result, private marketers have been unable to meet their approximate 50% portion of total national supply of PMS.
Following a detailed presentation by the Honorable Minister of State for Petroleum Resources, it has now become obvious that the only option and course of action now open to the government is to take the following decisions:
- In order to increase and stabilise the supply of the product, any Nigerian entity is now free to import the product, subject to existing quality specifications and other guidelines issued by Regulatory Agencies.
- All Oil Marketers will be allowed to import PMS on the basis of FOREX procured from secondary sources and accordingly PPPRA template will reflect this in the pricing of the product.
Pursuant to this, PPPRA has informed me that it will be announcing a new price band effective today, 11th May, 2016 and that the new price for PMS will not be above N145 per litre.
We expect that this new policy will lead to improved supply and competition and eventually drive down pump prices, as we have experienced with diesel. In addition, this will also lead to increased product availability and encourage investment.”
It is now shocking to some Nigerians why the labour union later cried out, rejecting the removal of subsidy.
Nigerians have expressed scepticism over the call for a showdown by the NLC based on past experiences.
It is not clear if Nigerians will back NLC in this latest call.
